THE COOK ISLANDS TE KAVEINGA NUI NATIONAL SUSTAINABLE DEVELOPMENT PLAN 2011-2015

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THE COOK ISLANDS TE KAVEINGA NUI NATIONAL SUSTAINABLE DEVELOPMENT PLAN 2011-2015
THE COOK ISLANDS
TE KAVEINGA NUI

NATIONAL
SUSTAINABLE
DEVELOPMENT
PLAN
2011-2015
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TABLE OF CONTENTS

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MESSAGE FROM THE PRIME MINISTER
As we undertake the next leg of our Te Kaveinga Nui journey, it is fitting that the National
Sustainable Development Plan (NSDP) 2011-2015 is the result of widespread consultations
with stakeholders right across the Cook Islands, as it embodies the kinds of positive
conversations that we must have if we are to express our concerns one to another, define
our common goals and identify pathways toward achieving them.

NSDP 2011-2015 builds upon the gains made in NSDP 2007-2010 and the sacrifices of past
generations. To take our development to the next level, the eight overarching national
goals speak to a vibrant Cook Islands economy, supported by good infrastructure
development and energy security; where our people have the opportunities to fulfil their
potential; are resilient to the disasters and climate change impacts; live in a healthy
environment; and where our progress is underpinned by the principles of good governance
and law and order.

Our success in achieving our national goals will hinge on sustaining and strengthening the
public-private-community partnerships and dialogue that have been critical in the
formulation which has allowed the NSDP 2011-2015 to be a truly national output. This
planning process has bridged all sectors in our society, including Government ministries and
agencies, private sector, civil society, academia, civil society and our wider community to
harness and incorporate the range of technical expertise, experiences and skills.

To all who will be directly involved in the day to day implementation of NSDP 2011-2015, I
challenge us to be more efficient and effective in serving with devotion and integrity and to
improve our collective capacity to deliver. To our private sector, non-government, civil
society organisations and our regional and international partners, I appeal for your
continued support during this implementation phase. There is much work to be done. The
Government cannot do this alone; the support of the entire country is needed. This
partnership approach is the essence of NSDP 2011-2015.

I am determined to lead the implementation process to build a country where our people
enjoy the highest quality of life consistent with the aspirations of our people, and in
harmony with our culture and environment as articulated by our National Vision.

Hon. Henry Puna
Prime Minister

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ACKNOWLEDGEMENTS
The National Sustainable Development Plan (NSDP) 2011-2015, as the second leg in our Te
Kaveinga Nui journey, was prepared with the invaluable contribution, dedication and
commitment of the Cook Islands people towards the achievement of our National Vision –
‘To enjoy the highest quality of life consistent with the aspirations of our people, and in
harmony with our culture and environment’.

Specifically, the Central Policy and Planning Office (CPPO) of the Office of the Prime Minister
thanks all those who contributed their resources, time and intellect to initiate, prepare and
finalise the Plan, including the Government of the Cook Islands and the Opposition which
mandated the process; the Ministries and Agencies; the many stakeholders including
students, academia, the private sector, non-government organisations, civil society, and the
people in our communities who assisted in crafting and providing the scope and direction
for the NSDP 2011-2015.

The CPPO pays special tribute to the late Dorice Reid, Te Tika Mataiapo and the Koutu Nui
who have been valuable partners in reviewing NSDP 2007-2010 and engaging with our
communities across our islands to determine our national development priorities for 2011-
2015. Special ata wai wolo is also extended to the Chairpersons and members of the
various Task Forces (including the Economic Development Task Force) drawn from the
public and private sectors and civil society who generously gave their time, technical and
creative ideas, and worked diligently in identifying our development directions for this
NSDP.

Na te Atua tatou e arataki ma te tauturu i te akatupuanga i tatou i moemoea.

Meitaki Maata, Ata wai wolo e ye maneke

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TE KAVEINGA NUI
In 2007 the Cook Islands launched our country’s 2020 visionary framework - Te Kaveinga
Nui, articulating the National Vision and Development Outcomes desired by the Cook
Islands which would be realised through a three phase medium term planning approach.

   Te Kaveinga Nui        NSDP             NSDP             NSDP          Outcomes
  NationalVision 2020   2007-2010        2011-2015        2016-2020         2020

Te Kaveinga Nui was accompanied by the first National Sustainable Development Plan
(NSDP) 2007-2010, a strategy on how to progress towards the 2020 outcomes during the
first phase, then to be followed by NSDP 2011-2015 and finally 2015-2020.

The purpose of the NSDP is to set national goals, the expected results and effective
strategies to guide policy decisions over the medium term in order to realise the 2020
Development Outcomes that aim to deliver on Te Kaveinga Nui National Vision. The
National Vision and 2020 Development Outcomes demonstrate an approach that brings
together social, economic and environmental priorities underpinned by good governance,
culture and effective partnerships.

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OUR VISION, OUTCOMES AND GOALS

NATIONAL VISION

“To enjoy the highest quality of life consistent with the aspirations of our people in
harmony with our culture and environment”

“Te oraanga tu rangatira kia tau ki te anoano o te iti tangata, e kia tau ki ta tatou peu
Maori e te aotini taporoporoia o te basileia”

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NSDP 2011 – 2015
INTRODUCTION
The NSDP 2011-2015 is the second planning phase in our journey of Te Kaveinga Nui
towards the achievement of desired 2020 development outcomes and our National Vision -
‘to enjoy the highest quality of life consistent with the aspirations of our people, and in
harmony with our culture and environment’.

For us to be successful in realizing our National Vision, we must all become excited about
the challenges and opportunities to lift our development to a higher level in 2011-2015. We
must focus on positive action through our shared vision that is realistic and relevant to us as
individuals, families and as a society.

The NSDP 2011-2015 integrates the thoughts, ideas, hopes and dreams of a broad cross-
section of our society, both in Rarotonga and the Pa Enua. It is the culmination of many
community based consultations, brain storming and focus group sessions, perusing past
reports, and numerous public, private and community sector meetings to review our
progress on NSDP 2007-2010 and formulate this NSDP.

In outlining how we will achieve our National Vision and 2020 development outcomes, NSDP
2011-2015:

       Identifies our medium term goals and objectives;
       Presents national and sector strategies for achieving these goals and objectives;
       Proposes outcome indicators to measure performance over the medium term;
       Identifies actions for the medium term; and
       Presents a framework for its implementation, monitoring and evaluation.

To ensure implementation of the NSDP, the strategies and actions identified will be filtered
through medium term sector and specific agency plans. It is at the sectoral and agency
levels that the NSDP will be costed. As a living document, the NSDP will undergo constant
monitoring and alteration as deemed appropriate to reflect any changes to the
implementation environment.

To be successful the NSDP must deliver right across the Cook Islands. Whilst the goals,
objectives and strategies of the NSDP apply across the Cook Islands, there is recognition that
they must also be brought together at the local level, in the Pa Enua. Therefore, as part of
our Te Kaveinga Nui planning process, we will do further work with our communities in the
Pa Enua to identify the major challenges in their area and the actions that would make a real
difference in the lives of our local communities. This will ensure that where initiatives are
rolled out under the NSDP, our Pa Enua will receive its equitable share of development.

CONTEXT FOR NSDP 2011-2015

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The Cook Islands consists of 15 small islands scattered over 2 million square kilometres of
the Pacific Ocean. They lie in the centre of the Polynesian Triangle, flanked by Fiji 2,300 km
to the west, Tahiti 1,140 km to the east, Hawaii 4,730 km north and New Zealand 3,010 km
southwest. The climate of the Cook Islands is sub-tropical and tropical oceanic moderated
by trade winds.

Our islands became a British protectorate in 1888. By 1900 administrative control was
transferred to New Zealand. In 1965 Cook Islanders chose self-government, in free
association with New Zealand. About 70% of the population of approximately 20,000 are
domiciled on the largest of the Cook Islands, Rarotonga. Rarotonga is the capital and main
commercial and government centre, and hence the country’s dominant driver of economic
growth. Around 20% of the population lives in the eight islands of the Southern Group. Five
are elevated fertile volcanic islands, while the rest are atolls, except Mitiaro, which is raised
coral. These Pa Enua are within 300 km of Rarotonga. The remote Northern Group of Pa
Enua, more than 1,250 km from the capital, is made up of seven low lying, sparsely
populated, coral atolls and sand cays, with little arable land. A commonly held view is that
the size of the populace of Cook Islanders living in the Diaspora is approximately four times
the resident population. Continuing depopulation is a significant threat to the development
of the Cook Islands by Cook Islanders.

SOCIO-ECONOMIC DEVELOPMENT – A SNAPSHOT

                                          ECONOMIC INDICATORS
Economic Activity                                    2009 -10          2010-11       2011-12
                                                      Act/Est             Est          Proj
Nominal GDP ($’000)                                  345,380           356,960       377,540
% Change                                               4.2%              3.4%          5.8%
Real GDP (at constant 2006 Prices, $’000)            285,310           293,450       303,040
% Change                                               4.1%              2.9%          3.3%
GDP per capita                                        15,282            15,795        16,705
Inflation
Consumer Price Index (base Dec 2006=100)               117.7            118.3         121.3
% Change                                               1.8%             0.5%          2.5%
Construction/Capital Investment
Commercial Building Approvals ($’000)                  3,300            2,700        2,900
Residential Building Approvals ($’000)                 8,500            9,600        10,600
Productive Sector Indicators
Visitor Arrivals                                      99,400           106,000       111,500
% Change                                               2.6%             6.6%          5.2%
Estimated Visitor Expenditures ($’000)               209,900           225,100       241,500
Total Exports ($’000)                                  5,827            5,746         5,717
Total Imports ($’000)                                349,936           361,674       382,526
                                     SOCIAL INDICATORS (2006 CENSUS)
                                                       Total           Males        Females
Total Population                                      19,342           9,816         9,526
Resident Population                                   15,324           7,822         7,502
Urban Population (Rarotonga)                          13,890           7,030         6,860
Mortality
Life expectancy                                        72.8             69.5          76.2
Labour Force

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Employed Population                             44.3%            47.8%            40.7%
Unemployed                                      4.3%             4.4%             4.2%
Non-labour force
Students                                         820             423               397
Retired                                          923             499               424
Home duties                                     1,417            358              1,059
Labour force participation rate                 70.2             76.1             64.2
Employment-population ratio                     63.1             68.7             57.5
Unemployment rate (%)                           6.9%             6.7%             7.3%
Education
School enrolment rates of 5-15 years            97.4%            96.4%            98.5%
Proportion of population aged 15+:
         Trade and business certificate                           10.9             3.8
         Professional and higher certificate                      0.4              0.9
         Teachers and members of professional                     0.6              1.8
         societies
         Tertiary qualifications                                  12.6             16

Our implementation of NSDP 2007-2010 has in general resulted in good progress towards
our socio-economic development. Our economy contracted in the 2008/2009 and the
2009/2010 fiscal years. This downward movement reflects the effects of the global financial
crisis. There is a slight recovery for the 2010/2011 fiscal year and further improvement
projected for 2011/12. Tourism remains the key economic driver of the economy. Direct
receipts account for 50% of GDP but indirectly, tourism is driving the demand and activity of
over 90% of the economy.
The country’s primary dependence on tourism makes it extremely vulnerable to external
shocks. For example, the 9/11 terrorist attacks in 2001 fundamentally altered the
demographic of the tourism market, with the contraction of the North American tourist
market leading to the reduction of flights to and from the US and Canada. This increased
the country’s reliance on the New Zealand market, thereby resulting in lower yields across
the industry.
The cost of business is considered to be high due to numerous factors. The country’s small
size and isolation mean the majority of inputs for production are imported. The high cost of
finance is also seen as a major challenge to business investment and development (ANZ
commercial base lending rate in the Cook Islands as at June 2011 was 9.95% vs. ANZ in New
Zealand 6.24%).
Another impediment to economic growth is the limited labour force in the country. The
accessibility of New Zealand and Australia by way of the Cook Islands relationship with New
Zealand has meant that there has, and continues to be, considerable outward migration.
The last decade has seen an influx of foreign labour from Fiji, Tonga and the Philippines
working predominantly in the lower paying jobs. The need for business to import labour to
supplant the outward migrating local labour force has added to the cost of business in the
Cook Islands.

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Well over 90% of the country’s economic activity is generated on the main island of
Rarotonga, with Aitutaki - the second most populous island, making the only other
significant contribution to GDP.
The Cook Islands has succeeded in raising the overall standard of living as measured by
some of its key social indicators, and is on track to achieve the Millennium Development
Goals (MDGs) by 2015. Life expectancy, which was 72.8 years in 2006, is comparable to that
of developed countries. Enrolment in primary and secondary schools are near universal.
Pass rates in literacy and numeracy in our primary schools have improved with the majority
of our children working at or above the appropriate level for their chronological age. At
college level, the pass rate target of 50% for National Certificate of Education Achievement
has been surpassed. Furthermore, scope of subjects and teaching modalities have improved
to cater for the different needs of learners. The challenge to provide quality and equitable
education opportunities for our Pa Enua learners, comparable to their Rarotonga peers,
continues due to declining Pa Enua school roles. This is one of our key challenges in NSDP
2011-2015.
There have been improvements in our health indicators particularly those relating to
maternal, infant and under 5 years mortality rates. Yet there are serious concerns over the
increased prevalence of lifestyle related non-communicable diseases and obesity.
WHERE ARE WE NOW
The first leg of NSDP 2007-2010 has laid the foundations for our Te Kaveinga Nui journey.
We have made some good progress but many challenges remain. This NSDP 2011-2015 will
take our development to a new level of sustainability. We continue to face the challenge of
diversifying our economy by building productivity in all our sectors; further empowering our
people to achieve their full potential; ensuring that our infrastructure matches our
aspirations for economic and social development; improving governance; strengthening law
and order; building our people’s resilience to the threats of disaster and climate change, and
ensuring that our environment remains healthy for our future generations.

THE COOK ISLANDS: A SWOT ANALYSIS

A summary of the context for our path to achieve our vision, based on our country’s
strengths, weaknesses, opportunities and threats, is presented below.

STRENGTHS                                       WEAKNESSES
   Talented people                                Geographical isolation
   Unique cultural assets                         Dispersed islands
   National pride                                 Narrow economic base
   Political stability                            Unreliable, irregular and high cost
   High life expectancy                           transportation
   Unique environment and natural                 Reliance on imported goods
   resources                                      High dependence on imported
   High educational achievement                   petroleum
   Relatively good health outcomes                High energy costs
   Private sector led economy                     Vulnerability to natural and man-made
   Peaceful society                               hazards

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Relatively high standard of living                 Low productivity across most economic
   Good regional and international                    sectors (except tourism)
   relationships                                      Increase dependence on foreign workers
   Vibrant civil society                              to meet the country’s labour needs

OPPORTUNITIES                                     THREATS
   Expand the economic base by growing               Depopulation – brain drain of trained
   other economic sectors                            and educated Cook Islanders
   Potential for import substitution                 Impact of fluctuations in global economy
   Growth in economic value of global                and capital, currency and commodity
   cultural industries and markets                   markets
   Global advances in science, technology            Instability and unpredictability in the
   and innovation                                    supply and price of imported petroleum
   Development of the Green Economy                  Vulnerability to the impacts of climate
   Large Diaspora (our population living             change
   abroad and their potential to contribute          Increased likelihood of natural hazards
   to national development)                          Inadequate political will or social
   Strong relationships with regional and            partnerships to implement
   international partners                            transformation
                                                     Disparity between Rarotonga and the Pa
                                                     Enua

NSDP 2011-2015 will look to utilise our strengths and opportunities whilst using innovation
to overcome weaknesses and threats. We expect that taking a sustainable development
approach on these issues will lead to more integrated and holistic outcomes. This in turn,
should result in a quantum leap in the type of solutions we develop and undertake.

GUIDING PRINCIPLES
Our development during 2011-2015 is based on seven guiding principles which put our
people at the centre of the Cook Islands development. These are leadership, partnership,
transparency and accountability, social cohesion, equity, sustainability and national
development. They give priority attention to elements that are essential to providing the
quality of life for our people, and reflect the key pillars needed to realise our national vision.

Leadership

Leading the country to achieve its National Vision requires strong and decisive leadership at
all levels of society. Champions of change and accountability within the various institutions
of Government, in partnership with the private sector and civil society, must lead in
achieving desired results. Ownership of the National Vision and the development planning
process must reverberate at every level of Cook Islands society. We must all have a sense of
the role that we are expected to play and take seriously our responsibility for the successful
implementation of NSDP 2011-2015.

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Partnership

The opportunities envisaged under our National Vision require the promotion of our
country’s common good over vested interests and significant technical and financial
resources, both of which are beyond the scope of our Government alone. We need to
bridge the resource gap and remove obstacles that could undermine the success of NSDP
2011-2015. Our success requires the conscious collaboration of our Government,
traditional leaders, the private sector and members of the community, in pooling the use of
their expertise and resources in public private partnerships in pursuit of the goals of NSDP
2011-2015, supported where appropriate through cooperation between the Cook Islands
and regional and international partners. Opportunities for such partnerships will include the
input of the voluntary sector and faith based organisations in facilitating change in mindset
and reinforcing the positive core values of our society; private sector capital investments in
social and economic infrastructure; and our peoples’ monitoring to ensure accountability
and value-for-money is realised from public investments.

Achieving our goals for NSDP 2011-2015 calls for every Cook Islander to participate in both
the responsibilities and benefits of national development and this hinges on partnership as
both being a fundamental value and adopted as a strategy.

Transparency and Accountability

NSDP 2011-2015 recognises that transparency and accountability are essential for the
efficient functioning of our economy and for fostering social wellbeing. As we embark on
implementation, we must ensure timely access to information that can be used to measure
performance and hold Government accountable for its actions.

Social Cohesion

This guiding principle will engender a sense of belonging and pride in our people and
generate the trust required to take us through both the good and challenging times as we
journey towards a sustainable future. It will ensure that our people unite around a set of
shared values and responsibilities and a common sense of nationhood.

Equity

This guiding principle will facilitate and ensure equality of opportunity and equal rights for
all our people including access to public goods and services such as education and health
care. NSDP 2011-2015 will promote the human rights of our people, including the most
vulnerable and marginalised groups. It will identify and address gender and other biases in
our society.

Sustainability

A sustainable future for our nation requires us to effectively integrate economic, social and
environmental issues in order to make the wisest use of our capital stocks to meet the
needs of current and future generations. We recognise that economic, social and
environmental problems and solutions are inter-connected and that an integrated approach

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to address these issues, underpinned by good governance and fundamental cultural values
to address these issues will ensure that our development is sustainable.

National Development

This principle will encourage us to promote development on a truly national scale, one that
encompasses both Rarotonga and our Pa Enua. It will allow for the inclusion of our Pa Enua
in decision making, optimal use of resources in all areas, and facilitate the development of
multi-sectoral and spatial linkages.

CHANGING THE MINDSET
At the heart of our National Vision and NSDP 2011-2015 is the transformation of our society
to turn our National Vision into action. This transformation will only take place if there is a
change in the mindset of the nation which addresses those traits that are likely to inhibit
progress towards development. This change is vital if we are to capitalise opportunity in our
size, our geographical makeup, our distance from markets and overcome our economies of
scale.

We must harness our Cook Islands spirit and the respect for and prominence that we give to
our positive societal values and attitudes and to our Christian beliefs. Core values include
respect, honesty, truthfulness, forgiveness and tolerance. Attitudinal values such as trust,
honour, discipline, responsibility, cooperation, integrity, good work ethic and punctuality
are essential for transforming our society into a prosperous one. Our economy must be
recast though the adoption and infusion of transformative values.

As a nation, we must choose to achieve sustainable prosperity to ensure a more promising
future and the realisation of our NSDP 2011-2015 National Goals as well as our long term
National Vision.

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NATIONAL GOALS 2011-2015
NSDP 2011-2015 is built on eight national goals for our country’s development. The key
underlying purpose of NSDP 2011-2015 is to turn our National Vision into Action. These
goals are mutually reinforcing and synergistic in design, and their achievement cannot be
realised in isolation from each other.

Our selection of goals, objectives and the design of strategies and actions to realise these
goals, collectively represent our approach to development planning informed by our public
and the review of the NSDP 2007-2010. This approach is relatively broad in scope,
participatory in design and intended implementation - though medium term - will be long
term in reach and transformational in nature. The NSDP thus provides a comprehensive
framework within which the linkages amongst the pillars of sustainable development are
made, and presents a broad strategic thrust for Te Kaveinga Nui journey towards
sustainable development for the Cook Islands.

Our eight National Goals give greater articulation to our National Vision “to enjoy the
highest quality of life consistent with the aspirations of our people, and in harmony with our
culture and environment” and are pillars on which our focus for 2011-2015 for sustainable
development rests.

PRIORITY AREA 1: ECONOMIC DEVELOPMENT
GOAL 1: A VIBRANT COOK ISLANDS ECONOMY
‘A COOK ISLANDS WHERE INGENUITY AND CONNECTION TO OUR CULTURE AND
ENVIRONMENT UNDERPINS THE ABILITY OF OUR PEOPLE TO BUILD BUSINESS AND
ENTERPRISE TO CONTRIBUTE TO NATIONAL ECONOMIC GROWTH’

PRIORITY AREA 2: INFRASTRUCTURE
GOAL 2: INFRASTRUCTURE FOR ECONOMIC GROWTH AND SUSTAINABLE LIVELIHOODS
‘OUR INVESTMENT IN INFRASTRUCTURE WILL MAXIMISE ECONOMIC RETURN, IMPROVE
LIVELIHOODS AND BUILD RESILIENCE’

PRIORITY AREA 3: ENERGY
GOAL 3: ENERGY SECURITY
‘RENEWABLE ENERGY FOR ENERGY SECURITY TO ENHANCE OUR ECONOMIC AND SOCIAL
DEVELOPMENT AND ENVIRONMENTAL INTEGRITY’

PRIORITY AREA 4: SOCIAL DEVELOPMENT
GOAL 4: OPPORTUNITY FOR ALL PEOPLE WHO RESIDE IN THE COOK ISLANDS

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‘A COOK ISLANDS WHERE ALL PEOPLE WHO RESIDE IN OUR ISLANDS CAN ENJOY
OPPORTUNITIES TO FULFIL THEIR POTENTIAL, PROSPER AND PARTICIPATE IN THE SOCIAL,
ECONOMIC, POLITICAL AND CULTURAL LIFE OF OUR COMMUNITIES AND NATION’

PRIORITY AREA 5: RESILIENCE
GOAL 5: RESILIENT AND SUSTAINBLE COMMUNITIES
‘A COOK ISLANDS WHERE OUR PEOPLE ARE RESILIENT TO DISASTERS AND CLIMATE CHANGE
TO ACHIEVE SUSTAINABLE LIVELIHOODS’

PRIORITY AREA 6: ECOLOGICAL SUSTAINABILITY
GOAL 6: ENVIRONMENT FOR LIVING
‘A COOK ISLANDS WHERE WE SUSTAIN OUR ECOSYSTEMS AND USE OUR NATURAL
RESOURCES EFFICIENTLY’

PRIORITY AREA 7: GOVERNANCE
GOAL 7: GOOD GOVERNANCE
‘A COOK ISLANDS THAT THRIVES ON GOOD GOVERNANCE PRINCIPLES’

PRIORITY AREA 8: LAW AND ORDER
GOAL 8: A SAFE, SECURE, JUST AND STABLE SOCIETY
‘A COOK ISLANDS WHERE THE RULE OF LAW ENSURES SAFE, SECURE, JUST, STABLE AND
SUSTAINABLE COMMUNITIES’

WHAT ARE WE GOING TO DO IN 2011-2015?

A vibrant Cook Islands Economy                          Infrastructure for Economic Growth,
‘A Cook Islands where ingenuity and connection to       Sustainable Livelihoods and Resilience
our culture and environment underpins the ability of    ‘Our investment in infrastructure will maximise
our people to build business and enterprise for         economic return, improve our peoples livelihoods
national economic growth’                               and build resilience’
Objective 1: An energised and growing green             Objective 1: Our investment in infrastructure will
economy through supporting our key economic             foster economic growth, sustainable environment
drivers and encouraging environmentally sound           and livelihoods and increase the resilience of our
innovation in potential areas of growth                 communities to disasters and the impacts of climate
Objective 2: Enterprise is enabled by establishing an   change
innovative environment conducive for existing           Objective 2: Our delivery and ongoing management
businesses to confidently grow and for new              of infrastructure will be improved significantly
businesses to start, grow and thrive in our
communities
Objective 3: Our Cook Islands environmental and
cultural values are integral to business decision
making and practice
National Strategies:                                    National Strategies
     Ensure our tourism excellence                          Improve access to water for our communities
     Unlock our potential from our marine resources         Improve our facilities for waste management
     Unlock our potential from our agricultural             Improve our transport infrastructure
     production                                             Improve telecommunications

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Identify and exploit trade opportunities                  Strengthen our asset management
    Build our financial services                              Enable robust construction
    Ensure that our cultural and creative Industries          Build capacity in the infrastructure sector
    are a key force in job and wealth creation and
    nation building
    Sustain macro-economic stability
    Ensure proactive economic development policies

Energy Security                                           Resilient and Sustainable Communities
‘Renewable energy for energy security to enhance          ‘A Cook Islands where our people are resilient to
our economic growth, social development and               disasters and climate change to achieve sustainable
environmental integrity’                                  livelihoods’
Objective 1: Secure and reliable energy services          Objective 1: Our people are prepared for disasters
Objective 2: Enhanced efficiency and improved             and climate change impacts
affordability of energy                                   Objective 2: The impacts of disasters and climate
Objective 3: Investment for renewable energy              change are reduced
development fostered                                      Objective 3: Our people are resilient to all forms of
Objective 4: Energy standards and compliance will be      hazards
upheld by a well-regulated energy sector

National Strategies                                       National Strategies
    Strengthen the institutional framework of the             Ensure strong governance arrangements for
    energy sector                                             disaster risk management and climate change
    Utilise only proven renewable energy                      adaptation
    technologies                                              Ensure that high quality risk information is
    Provide incentives for renewable energy                   available to inform planning and
    Upgrade existing energy infrastructure                    implementation
    Promote energy efficiency and conservation                Enhance effective preparedness, response and
    Build our capacity in the energy sector                   recovery
                                                              Build resilience through effective disaster risk
                                                              reduction and climate change adaptation

Opportunity for all People who Reside in                  Environment for Living
the Cook Islands                                          ‘A Cook Islands where we sustain our ecosystem
‘A Cook Islands where all people who reside in our        and use our natural resources efficiently’
islands can enjoy opportunities to fulfil their
potential, prosper and participate in the social,
economic, political and cultural life of our
communities and nation’
Objective 1: Our people fulfil their potential through    Objective 1: The use of all our natural resources are
equitable access to quality learning opportunities        managed well to ensure their sustainability
across the full spectrum of human endeavour               Objective 2: Our scarce and degraded natural
Objective 2: Our people fulfil their potential through    resources are effectively monitored and restored
access to quality and affordable health care              Objective 3: The pollution of air, water, and land
Objective 3: Our people fulfil their potential because    resources is managed so that impacts are minimised
they are empowered and have strong families and           and community and ecosystem health is not
communities                                               adversely affected
Objective 4: Our people fulfil their potential because    Objective 4: Irreversible loss and degradation of
they participate in leisure, recreation and competitive   biodiversity (marine, terrestrial, aquatic ecosystems)
sports activities                                         is avoided

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Objective 5: Cook Islanders share a strong national       Objective 5: Our actions to protect and manage our
identity and sense of belonging                           ecosystems and natural resources will include
                                                          climate change adaptation and emissions reduction
                                                          measures
                                                          Objective 6: Taking care of our natural environment
                                                          is everybody’s business where all stakeholders will
                                                          actively play their part in protecting and managing
                                                          our fragile ecosystems

National Strategies                                       National Strategies
    Ensure that parents and communities have                  Improve the management and quality of our
    confidence in our education system and support            water resources through an integrated approach
    quality learning and development for the very             Improve water quality through better sanitation
    young                                                     measures
    Ensure that every child is literate and numerate          Implement waster minimisation programmes
    by the end of year 8 and that literacy and                and provide appropriate facilities and incentives
    numeracy skills for continuing education are              to support these with the purpose of achieving
    provided                                                  zero waste
    Enable every young person to have access to the           Implement an ecosystem approach to the
    opportunity to develop knowledge and skills to            management of marine resources
    gain qualifications that they need to contribute to       Develop and implement interventions to ensure
    the development of the Cook Islands                       that land use is sustainable
    Ensure equitable access for all learners to quality       Protect our biodiversity and ecosystems
    learning programmes
    Ensure that the Education Sector is responsive to
    the training needs of the wider community
    through collaboration and partnerships with
    other agencies
    Ensure optimum health for our children and
    young people
    Provide quality health services for all
    A multi-sectoral approach to combat non-
    communicable diseases (NCDs)
    Ensure gender equality and empower our women
    Guarantee that our children are safe and well-
    cared for; that our youth are given the
    opportunity to grow as valuable members of
    society; our persons with disabilities are valued
    and included in our development and our elderly
    are acknowledged for their contributions to
    society and are looked after
    Ensure we have strong families and communities
    Our people can access an adequate range of
    different opportunities for leisure, recreation and
    competitive sports
    Ensure the promotion and preservation of our
    unique culture, languages and social heritage

Good Governance                                           A Safe, Secure, Just and Stable Society
‘A Cook Islands that thrives on good governance           ‘A Cook Islands where the rule of law ensures a
principles’                                               safe, secure, just and stable society’
Objective 1: Our general public has confidence in the     Objective1: Clear, coherent and relevant laws; fair,
systems of government                                     accessible and efficient courts and institutions for
Objective 2: A machinery of government focused on         the administration of justice

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strategic direction, progressive partnerships and         Objective2: Free access to our Cook Islands laws
service satisfaction                                      Objective 3: Quality policing services to our
Objective 3: Increasing the value of existing taxpayer    communities and visitors
dollars through systems that deliver effective            Objective 4: Control of our borders is efficient and
development outcomes                                      effective
Objective 4: A general public that is continuously         Objective 5: Quality enforcement of our laws
informed of the return on investment for their
taxpayer dollar and as a result actively contributes to
development decision making and actions
Objective 5: Regional and international relations to
contribute effectively to Cook Islands sustainable
development

National Strategies                                       National Strategies
    Strengthen the role of parliament to hold                 Ensure that our legislative and regulatory
    managers to account for performance                       frameworks reflect our sustainable
    Strengthen electoral systems and processes                development goals and objectives
    Ensure that Government service delivery is                Ensure quality enforcement of our laws
    efficient and effective                                   Improve access to Justice
    Promote partnerships with civil society and the           Improve our land management and land
    private sector                                            information systems
    Strengthen information and data collection,               Reduce reoffending through offender
    analysis and management for informed decision             rehabilitation
    making                                                    Ensure that our communities and visitors are
    Ensure access to information                              safe, secure and stable through the provision of
    Improve accountability and transparency of                quality policing
    public financial management                               Ensure our border security both with respect to
    Establish and strengthen external relations that          the movement of goods and persons through
    will benefit the Cook Islands                             the introduction and operation of effective laws
                                                              and systems

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ACHIEVING OUR 2011-2015 NATIONAL GOALS

PRIORITY AREA 1: ECONOMIC DEVELOPMENT
A strong economy allows us to provide quality services such as healthcare, education,
policing and infrastructure. However, prioritising economic development should not be at
the cost of social and environmental processes. Implicit in the quality of growth that we are
seeking will be the integration of economic, social, cultural and environmental pillars of
sustainable development. Sustaining a high quality environment, as well as building our
social and cultural base, is critical for our economic development. Our choice of economic
policy instruments will be influenced by their interactions with social, environmental and
cultural factors. Our economic growth will be ‘green growth’ centred on the protection,
conservation, restoration and management of our environment. Our brand of green growth
will have a distinctive Cook Islands mark that reflects our cultural values. BRAND COOK
ISLANDS will be introduced to the world as the umbrella for all outward facing interaction
on the global stage. The changing landscape of information technology also offers us
endless opportunities to promote BRAND COOK ISLANDS its products and experiences. Our
economic growth will be achieved through strong partnerships between private sector,
government and our communities.

OUR GOAL

A VIBRANT COOK ISLANDS ECONOMY

‘A COOK ISLANDS WHERE INGENUITY AND CONNECTION TO OUR CULTURE AND
ENVIRONMENT UNDERPIN THE ABILITY OF OUR PEOPLE TO BUILD BUSINESS AND
ENTERPRISE FOR NATIONAL ECONOMIC GROWTH’

OUR KEY OBJECTIVES

   1. An energised and growing green economy through supporting our key economic
      drivers and encouraging environmentally sound innovation in potential areas of
      growth.
   2. Enterprise is enabled by establishing an innovative environment conducive for
      existing businesses to confidently grow and for new businesses to start, grow and
      thrive in our communities.
   3. Our Cook Islands cultural and environmental values are integral to business decision
      making and practice.

HOW WILL WE ACHIEVE OUR OBJECTIVES?

To achieve our objectives we will embark on strategies that:

1. Ensure our Tourism Destination Excellence
   We will embark on strategies that ensure that the Cook Islands achieve its full potential
   as a leading sustainable tourism destination. Tourism is our primary economic driver

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and will continue to be so for the long term. To ensure its continued success, it is
   necessary to focus not only on volume, but also yield and dispersal beyond Rarotonga to
   the Pa Enua.

   In recognition of this, Government has committed to underwrite key airline routes
   between Rarotonga, Los Angeles and Sydney and to allocate marketing funds to support
   the success of these routes over the next three years. We will continue to explore
   opportunities for further airline access between the Cook Islands and its markets while
   delivering a targeted strategy of market stimulation which ensures growth in market
   share, yield and dispersal to the Pa Enua.

   Our Destination Development Strategy will strongly underpin the green image that we
   seek. At the same time, our strategy will make tourism ‘everybody’s business’ by
   encouraging collaboration and inter-linkages aimed at integrated sustainable growth
   across all sectors. This will be evident in the development of an alternative port in
   Rarotonga for our cruise industry and in the long term upgrading our ports in the Pa
   Enua. Complimenting these efforts, will also be the upgrade of airports across the
   country.

   Small business growth will be targeted to showcase our fashion, arts, crafts, pearls, food
   and produce. We shall provide places where our people can showcase their creativity,
   innovation and entrepreneurism, while adding to the distinctive character of the Cook
   Islands.

   Integral to our Destination Development Strategy is the promotion of our cultural and
   sporting events, creative industries, and educational facilities and services. Green
   standards will underpin every element of business within the tourism industry and
   across the nation ensuring that this important economic sector delivers long term
   sustainable growth measured against the nation’s commitment to a green future.
   Central to this will be holding all tourism operators to these standards as part of the
   National Tourism Accreditation Programme.

   To achieve long term sustainability for the industry, it is necessary to plan for future
   growth ensuring that infrastructure and tourism development are integrated, and that
   any new developments are delivered against criteria that ensure cultural, environmental
   and community integrity in order to deliver an optimal Cook Islands tourism experience
   to both our visitors and our communities. The long term purpose is to grow our
   country’s economy through tourism without compromising our country’s unique
   qualities.

2. Unlock our Potential from our Marine Resources
   We have 2.2 million square kilometres of ocean and this offers great potential for
   economic growth in the short, medium and long term. However, any activities in our
   oceans must be conducted in a sustainable manner underpinned by the principles of
   precaution, conservation and effective management, and shared responsibility.

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In the medium term there are seven key strategies to increase our economic return from
   our marine resources. Firstly, is to expand income earning opportunities from
   sustainably managed offshore fisheries through capacity building, infrastructure and
   market development. Secondly, is to achieve a profitable and sustainable pearl industry
   by improving productivity, marketing and environmental management. Thirdly, is to
   improve income generating opportunities for the private sector particularly in the Pa
   Enua, through increased provision of technical and scientific assistance. Fourth, is to
   ensure sustainable fishing and conservation practices resulting in traditional subsistence
   practices and long term food security. Fifth, we will strive to protect and conserve our
   natural marine biodiversity, its affiliated customary practices and knowledge. Sixth,
   explore potential sustainable commercialisation of marine resources, such as, marine
   eco-tourism and other innovative marine business enterprises. Lastly, to ensure that we
   wisely utilise our seabed mineral resources for economic development, maximise the
   long term benefits from money generated, while minimising the impacts to the
   environment caused by extraction.

3. Unlock our Potential from our Agricultural Production

   We were once an economy based on agriculture, yet currently we import far too much
   produce. We have the potential to reduce our imports of agricultural products.
   Therefore, first and foremost, we will revitalise our agriculture industry - particularly in
   the southern islands of the Pa Enua as not only an import substitution strategy, but also
   one that will assure food security in the face of climate change, economic earning
   opportunities and encourage the consumption of healthy food to ensure good health
   outcomes.

   In revitalising agriculture we will strive for better partnerships between government and
   our farmers, exporters, markets and our airline and shipping services.

   Our efforts in revitalising agriculture will be based on the principles of biological, organic
   production and best agricultural practices aligned to our desire for green growth. These
   efforts will be complemented by research, education and vocational training to ensure
   that production, marketing and trade facilitation are aligned to ‘green agriculture’
   international standards.

4. Identify and Exploit Trade Opportunities
   With our open economy and longstanding approach to international trade and other
   economic relations, our attention will continue to be given to identifying and exploiting
   regional and international trade opportunities, including through the negotiation of
   agreements to promote our sustainable development objectives. This will include trade
   in both goods and services.

   In pursuing this strategic approach, there will continue to be regular consultations
   between government entities and other relevant stakeholders.

5. Build our Financial Services

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In past years we were the leaders in international financial services in the Pacific but we
   have not kept pace with our competitors. This industry has the ability to make far more
   significant contributions to our economy with zero impact on our environment. To do
   this, we will firstly upgrade the legislative framework relating to financial services. This
   will create a new competitive advantage by improving existing services and creating new
   products and services. Secondly, we will enhance our marketing through targeted
   advertising to increase our threshold of exposure to raise the profile of the jurisdiction
   and create new client markets. Thirdly, we will increase our presence in the
   international marketplace to promote the industry, demonstrate our commitment, and
   eliminate any negative perceptions about the Cook Islands’ jurisdiction.

6. Ensure that Cultural and Creative Industries are a Key Force in Job and Wealth
   Creation and Nation Building

   The Cultural and Creative Industries (publishing, film, broadcasting, music, visual and
   performing arts, journalism, museums and art exhibitions, retail, architecture, design,
   advertising, software, etc) are committed to the creation of wealth through the
   application of ideas and individual creativity. Our people’s creativity is renowned and
   should be harnessed as powerful engines for economic growth and trade development –
   not only in terms of direct economic impact from the marketing and the sale of goods
   and services, but also as a multiplier in other sectors.

   The government is committed to creating the enabling environment for cultural and
   creative industries to start, thrive and grow including the endorsement of the necessary
   policy and legislative frameworks.

   In the medium term we will pursue efforts to develop a culture of creativity and
   enterprise through our education system; develop and strengthen partnerships;
   promote national and international recognition for our people’s creativity; increase
   exposure of our creativity and cultural strength including our Maori language; and
   improve research and development in cultural and creative products.

7. Sustain Macro-Economic Stability
   Sound fiscal management makes a major contribution to achieving economic growth by
   providing confidence to the business sector and potential investors. Government, since
   the mid 1990s, has maintained a relatively prudent macroeconomic stance guided by
   principles of fiscal responsibility as outlined in the Ministry of Finance and Economic
   Management Act 1995-96.

   In its role, the government will maintain macroeconomic stability as an essential
   prerequisite for sustained growth. Macroeconomic policies will be geared towards
   maintaining fiscal discipline, whilst at the same time promoting investments that will
   support sustained economic development. In doing so, government will ensure that it
   limits the diversion of resources away from the private sector through its tax policy,
   controls expansion in the size of the public sector while also maintaining affordability,
   and keeping national debt within a sustainable level. Government has established fiscal
   responsibility ratios to quantify its performance in managing the macroeconomic
   environment and will closely align its decisions towards upholding these ratios.

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8. Ensure Proactive Economic Development Policies that are Underpinned by
   Environmental Sustainability Principles
   The public and the business sector have indicated that government should take a more
   proactive role in creating the environment that will stimulate business and enterprise. It
   is acknowledged that a comprehensive regulatory reform agenda, aimed at building a
   seamless national economy encouraging competition, promoting opportunities and
   creating positive impacts on productivity is required. This shall be pursued through a
   continuous programme that ensures policy consistency and maintains regulatory
   certainty and clarity. Areas such as labour relations, foreign investment, intellectual
   property, competition, immigration and trade have been identified as priorities for
   policy and regulatory reform. The regulatory framework must be aligned with changes
   in the global regulatory tools, agreements, processes and approaches, including new
   best practices and standards. Complimenting regulatory reform will be the streamlining
   and simplifying of licensing.

   Whilst the Cook Islands hope to attract foreign investment that will be beneficial to the
   country this will be achieved by maintaining a balance with appropriate protection for
   domestic players.

   Empowering our small scale entrepreneurs and micro enterprises is fundamental for
   economic development and for sustaining families. Therefore, the provision of business
   support, including access to financial resources and services, capacity development in
   business management, vocational training and bridging the skills gap through human
   capital development, will be targeted.

   As part of its efforts in promoting local business, government will re-engineer its role in
   the economy to one which supports rather than competes with the private sector by
   outsourcing functions which could be better performed by the private sector and
   entering into public private partnerships where efficiency and service satisfaction gains
   can be made.

   Alongside the creation of an environment that stimulates private sector growth,
   government will develop policies to introduce incentives to minimise impacts on the
   natural environment. Incentives will ensure that businesses that meet environmental
   standards are rewarded and those businesses that pollute and degrade pay the cost of
   their actions.

   The potential to grow our economy is dependent on our people’s productivity.
   Government will pass the necessary regulatory and legislative frameworks to protect the
   rights of both our employees and employers, including the promotion of gender equality
   in the workplace and the rights of persons with disabilities, to participate in the
   economy.

HOW WILL WE MEASURE OUR SUCCESS?

   1. Real GDP growth averages 2.5 % per annum
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2. Private sector employment growth averages 2.5% per annum
   3. Growth in total visitor numbers over 120,000
   4. Growth in contribution to the economy as a % growth of GDP from our tourism
       industry
   5. Growth in contribution to the economy as a % growth of GDP from our marine
       resources
   6. Growth in contribution to the economy as a % growth of GDP from our agricultural
       production
   7. Growth in contribution to the economy as a % growth of GDP from our Offshore
       Financial Industry
   8. Government tax revenue to GDP maintained within 25% over the medium term
   9. Personnel to total revenue is reduced and maintained within 40% over the medium
       term
   10. A National Trade Policy will be adopted and trade agreements entered into where
       they offer opportunities and benefits to the Cook Islands

PRIORITY AREA 2: INFRASTRUCTURE
Infrastructure is central to improving livelihood opportunities and delivering critical goods
and services.      Therefore, with ecological sustainability, provides the foundation for
economic and social development. Our efforts will be geared towards increasing the
productivity of environmentally sound infrastructure as an important step towards
sustaining overall economic growth, improving livelihoods and building the resilience of our
communities to disasters and climate change impacts.

OUR GOAL

INFRASTRUCTURE FOR ECONOMIC GROWTH, SUSTAINBLE LIVELIHOODS AND RESILIENCE

‘OUR INVESTMENT IN INFRASTRUCTURE WILL MAXIMISE ECONOMIC RETURN, IMPROVE
LIVELIHOODS AND BUILD RESILIENCE’

OUR KEY OBJECTIVES

   1. Our investment in infrastructure will foster economic growth, sustainable
      environment and livelihoods and increased resilience for our communities to
      disasters and the impacts of climate change.
   2. Our delivery and ongoing environmentally sound management and maintenance of
      infrastructure will be improved significantly.

HOW WILL WE ACHIEVE OUR OBJECTIVES?

To achieve our objectives we will embark on strategies that:

1. Improve Access to and Quality of Water to our Communities
   To improve the access to water for our communities, our efforts will include the
   rehabilitation of water intakes, upgrade water galleries, advance work on our ringmain
   and distribution lines, increase water harvesting and storage. Furthermore we will

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promote and implement the most viable options to ensure the safety and improved
   quality of our water supply.

   These efforts will complement those identified under our ecological sustainability goal
   to further implement our integrated approach to water resource management and also
   to ensure water security as articulated in our goal to build resilience to disaster and
   climate change impacts.

   We anticipate that cost recovery for the delivery of water resources will be implemented
   in 2011-2015.

2. Improve our Facilities for Waste Management
   To complement our strategy for ecological sustainability through improved waste
   management, we will transform the way we use our waste facilities in Rarotonga and
   Aitutaki to Resource and Recovery Centres where waste is transformed so that it may be
   reused – for example, crushing glass to use for construction.

   Additionally, we will implement the National Waste Strategy utilising the best options to
   address waste management in the remaining islands. Fundamental to our approach to
   transform the management of waste will be the use of public private partnerships.

3. Improve our Transport Infrastructure
   Our work on improving our roads will be done in conjunction with the improvements of
   our water, energy and telecommunication distribution networks. We will establish
   public private partnerships in road management and take into consideration road safety
   and the impact of disasters and climate change in all engineering specifications.

   We will continue to improve our airports in our Pa Enua to complement our economic
   development efforts beginning in 2011-2015 with improvements to Aitutaki, Atiu,
   Manihiki and Mangaia airstrips and terminals. We will also continue upgrading our ports
   in our Pa Enua completing development in Mauke and Mitiaro in 2011-2012 and rolling
   out the upgrade of Manihiki, Rakahanga and Aitutaki ports in 2012-2015. Efforts in
   Aitutaki will be focused on widening the harbour, developing a marina and upgrading
   the island centre. Improvements to our airports and ports will include disaster risk
   reduction and climate change adaptation measures.

   Transportation to the Pa Enua is a challenge and can hinder the planned development
   initiatives in those islands. Therefore, efforts will be made to ensure improvements to
   transportation to, from and between the Pa Enua, Rarotonga and other markets. These
   efforts will focus on cooperation between Government and the private sector to
   improve transportation efficiency and connectivity to the Pa Enua and with the
   economy. Incentives will be introduced to encourage shipping that adopts green
   transportation technology.

4. Improve Telecommunications

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Telecommunications can increase the efficiency of the economy; facilitate commercial
   and administrative activities; improve effectiveness of social and emergency services;
   and distribute the social, cultural and economic benefits of the development process
   more equitably throughout the country. Furthermore, telecommunications is also a
   prerequisite for participation in an increasingly competitive global economy and for
   attracting new investment.

   In 2013 we will be connecting to the O3B Network of medium Earth orbit satellite
   constellation. It is anticipated that this will significantly increase the speed and quality
   of our telecommunication services.

   We will commit to strengthening our telecommunications regulatory framework and
   develop and implement policies and regulations that will result in improved
   telecommunications infrastructure and services. Changes to our telecommunications
   regulatory framework will be complimented by the most appropriate institutional
   arrangements to monitor telecommunications development and compliance, carry out
   regulatory responsibilities, drive policy development, and identify areas for capacity
   building to improve efficiencies in other productive sectors.

5. Strengthen our Asset Management
   We will strengthen the management of our public assets. As a matter of priority we will
   develop and implement asset management planning frameworks in 2011-2015.

6. Enable Robust Construction
   As a matter of priority we will review the Building and Standards Act and its associated
   regulations in 2011-2012 to ensure that these reflect our development aspirations by
   including standards and compliance to water harvesting, sanitation, energy efficiency,
   environmental assessments, extreme events benchmarks and climate change adaptation
   measures. We will strengthen our capacity in Geographical Information Systems and
   satellite imagery to better inform our development and land use planning.

7. Build Capacity in the Infrastructure Sector
   Building capacity is crucial for improving delivery of infrastructure development. Local
   capacity will be fostered by providing access to up-to-date technical skills to our people
   through vocational education and training, and developing community and private
   sector organisations capable of planning, implementing and overseeing infrastructure
   development. With the support of our development partners, we will jointly select and
   manage technical cooperation and promote the provision of technical cooperation by
   local and regional sources, including South-South cooperation. Special attention will be
   paid to build the capacity of our people in the priority areas of water, sanitation and
   renewable energy.

HOW WE WILL MEASURE OUR SUCCESS?

   1. Percentage of households having access to water is increased
   2. All 12 water intakes will be rehabilitated
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